Dear Friend,
This week, the House of Delegates debated and passed the biennial budget bill (HB30). I am devoting this week’s e-newsletter exclusively to discuss this budget proposal. Adopting a state budget is often considered the most important task of the General Assembly. A biennial budget must be in place by the start of the new fiscal year on July 1st.
Despite strong revenue collections, this budget failed to cut any taxes. In fact, the budget voted on by the House has a spending increase of $1.2 billion over the budget introduced by Governor Youngkin last December. I continue to believe that the state needs to cut taxes as part of any spending plan.
During the budget debate, Republicans offered two floor amendments that would cut taxes. The first would cut the remaining 1% grocery tax. Virginia is one of about a dozen states who still have a grocery tax. The second would begin phasing out the car tax. Each amendment was crafted in such a way that kept localities whole, meaning they would not see a decrease in revenue. Both floor amendments were defeated by Democrats on a party-line vote.
Republicans also fought to keep the cost of going to college stable. The introduced budget contained a tuition increase cap. That cap was regrettably removed from the budget by Democrats. Republicans tried to add it back in, but were defeated on a party line vote.
The budget proposal makes several concerning changes in the public safety sphere. First, the budget removes funding for Project Ceasefire. A program of the Office of the Attorney General, Project Ceasefire is a data-driven program aimed at reducing gun violence. Across the state, coordination between state and local partners has resulted in drastic reductions in violent crimes.
Democrats noted that the budget presented to the House contained no new tax increases. That is partially correct, but fails to accurately reflect the whole picture. Democrats are moving forward with what I refer to as “hidden tax increases.” These aren’t direct taxes, but rather new/expanded programs that will cost us big time. One key example is the $500 million price tag associated with rejoining the Regional Greenhouse Gas Initiative (RGGI).
Finally, the budget proposal includes a 300% increase in legislator pay. At a time when so many Virginians are struggling to make ends meet, I cannot in good conscience vote for a pay raise.
As with every budget proposal, I have to weigh the pros and cons before taking a vote. I was pleased to see raises for teachers and state employees. Those raises are well deserved. I am also glad that this budget does not include direct tax increases like the proposed tax on digital subscriptions and services. I believe the reason that these tax increases are not included is the strong, public pushback from Virginians from all corners of the state.
Virginia’s budget process is long and sometimes complex. The Senate also passed a budget plan this week that differs in several key ways. Over the next two weeks, senior legislators on the budget writing committees will meet to iron out the differences between the House and Senate budget proposals. Both chambers will then debate and vote on that compromise version before it gets sent to the Governor for her consideration.
I look forward to carefully reviewing this final budget proposal and voting in the best interest of our district.
You can visit budget.lis.virginia.gov to explore additional points in the budget.
As a reminder, my office is here to assist you with any problems you may face with a state government agency. Please reach out by phone or email so that we can help. If you have a federal or local matter, I will be happy to put you in touch with the right contacts.
I hope you found this week’s update informative. As always, it remains an honor to represent Colonial Heights and Chesterfield in the House of Delegates.
Sincerely,
Mike Cherry